₹50.11 Cr Balaji Phosphates IPO Opens Feb 28. Issue Details and SWOT Analysis

Balaji Phosphates Limited is set to launch its IPO, attracting attention from investors looking to tap into the growing fertilizer industry. The company, known for its phosphate-based fertilizers and soil enhancement products, has established a strong presence in multiple states. Here’s a complete breakdown of the IPO details, allocation structure, company financials, and SWOT analysis to help you make an informed decision.

IPO Details

Balaji Phosphates IPO is a book-built issue worth ₹50.11 crores. The IPO comprises a fresh issue of 59.40 lakh shares aggregating ₹41.58 crores and an offer for sale (OFS) of 12.18 lakh shares amounting to ₹8.53 crores. The IPO opens for subscription on February 28, 2025, and closes on March 4, 2025. The allotment is expected to be finalized on March 5, 2025, with the company listing on NSE SME on March 7, 2025.

Offer Price	₹66 to ₹70 per share
Face Value	₹10 per share
Opening Date	28 February 2025
Closing Date	4 March 2025
Total Issue Size (in Shares)	71,58,000
Total Issue Size (in ₹)	₹50.11  Cr
Issue Type	Book Built Issue IPO
Lot Size	2000 Shares
Listing at	NSE, SME

The IPO price band is set at ₹66 to ₹70 per share. Investors must bid for a minimum of 2000 shares, requiring a minimum investment of ₹1,32,000. Given the potential for oversubscription, bidding at the cutoff price is recommended, amounting to approximately ₹1,40,000. High Net-worth Individuals (HNIs) must invest in at least 2 lots (4,000 shares), requiring an investment of ₹2,80,000.

Allocation of Shares

Investors can bid for a minimum of 2000 shares and in multiples thereof. The table below summarizes the minimum and maximum investment requirements:

Investor Category	Lots	Shares	Investment Amount
Retail (Min)	1	2,000	₹1,40,000
Retail (Max)	1	2,000	₹1,40,000
HNI (Min)	2	4,000	₹2,80,000

Grey Market Premium (GMP)

As of February 27, 2025, the Balaji Phosphates SME IPO showed no Grey Market Premium (GMP), suggesting a projected listing price of ₹70, matching the issue price and no anticipated gain or loss.

Objectives of the IPO

The net proceeds from the IPO will be utilized for the following purposes:

• Meeting capital expenditure requirements.
• Funding the company’s working capital requirements.
• General corporate purposes.

Company Overview

Incorporated in 1996, Balaji Phosphates Limited manufactures and supplies phosphate-based fertilizers such as Single Super Phosphate (SSP), NPK Granulated and Mixed Fertilizers, and Zinc Sulphate. These fertilizers comply with India’s Fertilizer Control Order (FCO) standards and are sold to wholesalers, retailers, cooperatives, and farmers under the brands ‘RATNAM’ and ‘BPPL’.

The company’s manufacturing facility is located in Dewas, Madhya Pradesh. As of March 31, 2024, the unit had a manufacturing capacity of 120,000 MT per year for SSP, 3,300 MT for Zinc Sulphate, and 49,500 MT for NPK Granulated & Mix. The company primarily operates in Madhya Pradesh, Chhattisgarh, Maharashtra, Andhra Pradesh, and Telangana.

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Financial Strength

Balaji Phosphates Limited has maintained stable financial growth over recent years. As of August 31, 2024, the company had total assets worth ₹95.28 crore, compared to ₹88.48 crore in March 2024 and ₹96.83 crore in March 2023.

The company recorded revenue of ₹54.85 crore for the five months ending August 2024, while revenue for March 2024 stood at ₹151.68 crore. Revenue in March 2023 was ₹144.64 crore, and in March 2022, it was ₹124.12 crore. The profit after tax (PAT) for August 2024 stood at ₹4.15 crore, compared to ₹6.04 crore in March 2024, ₹6.09 crore in March 2023, and ₹3.19 crore in March 2022.

The company’s net worth has grown, increasing to ₹39.15 crore as of August 2024 from ₹35 crore in March 2024 and ₹28.97 crore in March 2023. Reserves and surplus have grown to ₹21.31 crore in August 2024 from ₹17.17 crore in March 2024. Total borrowings have increased to ₹35.58 crore in August 2024 from ₹33.22 crore in March 2024, reflecting ongoing financial leverage for business expansion.

SWOT Analysis

STRENGTHS	WEAKNESSES
Established presence in the phosphate fertilizer industry since 1996. Strong brand reputation with widely recognized ‘RATNAM’ and ‘BPPL’ products. Diversified product portfolio catering to different agricultural needs. Strategic manufacturing location in Madhya Pradesh, serving multiple states. Consistent financial performance with stable revenue growth.	Dependency on the agriculture sector, which is affected by weather conditions and government policies. Fluctuations in raw material prices could impact profit margins. Moderate reliance on borrowings for business operations.
OPPORTUNITIES	THREATS
Rising demand for fertilizers due to increased focus on agricultural productivity. Potential expansion into new regional markets and exports. Government initiatives supporting the agricultural sector could boost demand. Introduction of new fertilizer products to enhance the company’s market reach.	Competition from larger fertilizer manufacturers and new market entrants. Regulatory and compliance risks in the fertilizer industry. Market volatility affecting investor confidence post-listing.

Conclusion

Balaji Phosphates Limited has built a strong foothold in the agricultural sector with phosphate-based fertilizers and soil enhancement products. The company’s stable revenue growth, expanding market presence, and established brand reputation make it a noteworthy SME IPO. However, before deciding, potential investors should consider industry challenges, raw material dependencies, and market competition. With the IPO listing scheduled for March 7, 2025, on NSE SME, investors will closely watch the stock’s debut performance. Whether you are a retail investor or an HNI, understanding the company’s fundamentals and the IPO structure is crucial before subscribing.

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